Detroit Three to press Congress for $50 billion in factory retooling loans

The Detroit Three are pressing Congress to not only approve the $25 billion in loan guarantees that were part of an energy bill passed last December, but to double the amount to $50 billion. Congress approved the loans to retool old factories over five years, but hasn't authorized the money yet, so automakers are hoping to get more when Congress returns to session in September, according to The Detroit News.

The automakers' biggest concern is the 40 percent increase in fuel economy standards that were also approved in the energy bill. Federal regulators calculated that it would cost automakers $46.9 billion to meet the first sets of requirements by the 2015 model year.

"The overall price tag to meet the market shift and new fuel economy regulations will certainly be north of $25 billion," General Motors spokesman Greg Martin said. "But, we need to get the legislative process moving forward first and fast before we talk about what the precise cost will be. To describe the magnitude of the challenge, this industry has to comply with $100 billion mandate in some of the toughest market and economic conditions its ever seen."

"There will definitely be an effort to get the loan guarantees on the floor in one form or another,"DetroitSenatorCarl Levin told The Detroit News earlier this week.